Since 1 July 2011, the housing market has improved slightly with house purchase mortgage approvals for Q3 up 8% against the same period in 2010.
The interim management statement added approvals were flat from January to September year on year.
“Market conditions are challenging and uncertain and LSL has an increasingly cautious view of 2012. The current housing market continues to be impacted by the continued shortage of available mortgage finance, the general economic uncertainty and the increasing pressure on household budgets and consumer confidence,” it said.
“Against this difficult backdrop, LSL will continue to focus on growing market share and profitability in estate agency, developing surveying services for private buyers and capitalising on the growth opportunities arising from the Marsh and Parsons acquisition.”
The property firm, which offers mortgage broking, estate agency and surveying services, said trading was satisfactory for the three months ended 30 September.
The estate agency sector increased turnover +8% to October but its surveying arm reported -7% in the same period, although overall the group returned +2%. It said surveying services for private buyers are continuing to build in line with our expectations.
The firm reported strong cash generation and net debt at 31 October 2011 of £9.4m, down from £13.7m on 31 October 2010.
Estate agency pipelines at 31 October 2011 were 9% higher than on 31 October 2010 and a number of small lettings businesses were acquired in 2011 as the business continues to diversify revenue streams.
In a board appointment, Helen Buck is joining LSL as non executive director from 1 December 2011. Helen is currently convenience director and a member of the operating board of Sainsbury’s Supermarkets, part of J Sainsbury plc. Helen has previously held senior Retail and Marketing positions at Sainsbury’s Supermarkets Ltd, Marks and Spencer Group plc, Woolworths PLC and Safeway plc.
Roger Matthews, LSL Chairman, said: “I am delighted to welcome Helen to the LSL Board. I am confident that she will make a valuable contribution to the development and growth of the business.”
